Difference between AIS and Form 26AS
Basis |
AIS (Account Information Service) |
Form 26AS |
---|---|---|
Definition | AIS allows authorized third-party providers (TPPs) to access and aggregate financial information from multiple accounts held by an individual or business. | Form 26AS is an annual consolidated tax statement issued by the Income Tax Department of India to individual taxpayers. |
Scope | AIS covers a wider range of financial transactions. | Form 26AS covers a narrow range of financial transactions. |
Purpose | Provides users with a consolidated view of their financial information from different banks or financial institutions. | Provides taxpayers with a summary of tax-related information. |
Information Included | Account details, transaction history, balances, and other relevant financial data from multiple accounts. | Tax deducted at source (TDS) details, advance tax, self-assessment tax, tax refunds, and high-value transactions are reported to the tax department. |
Usage | Used for personal finance management, budgeting, financial planning, or other services requiring consolidated account information. | Used by taxpayers for tax compliance, filing income tax returns, and verifying tax credits. |
Accuracy | AIS is more accurate as it includes feedback from taxpayers. | Form 26AS is less accurate as it doesn’t includes feedback from taxpayers. |
Geographic Scope | Can vary depending on the country and the financial institutions involved. | Specific to the Indian tax system. |
Regulatory Framework | Governed by applicable regulations and data privacy laws in each country. | Governed by the Income Tax Act, 1961, and related regulations in India. |
Difference between AIS and Form 26AS
Annual Information Statement (AIS) and Form 26AS are two important documents that taxpayers in India need to be aware of. They both provide information about your financial transactions, but they do so in different ways.